As Sheldon Richman explains here, the Keynesian theory that the country simply needs more “demand” is wrong. Creating more “demand” won’t cause production of goods and services we want to increase.
The root of the trouble, he notes, is that most Americans have such a poor grasp of economics that they believe it when they hear politicians and interest group spokesmen say, “We need more federal spending now to restore prosperity.”
Priority One for JLF and all organizations dedicated to protecting what is left of American liberty and property rights should be an assault on the notion that government policies can stimulate the economy. We have a teachable moment and can’t let it pass.
